APPLIED ECONOMICS 257
NATURAL RESOURCES, ENVIRONMENT, AND ECONOMICS
Section 1, Fall 2006

The objective of this course is for students to learn how basic economic theory can be used to understand and analyze environmental and resource utilization. The assigned readings will familiarize students with key concepts in economic theory. Class activities and assignments will primarily focus on how these concepts can be used to analyze and understand "real world" environmental and natural resource issues. Through completion of this course, students will better understand how economic forces influence the behavior of both consumers and producers, how the behavior of consumers and producers affects the utilization of natural resources, and how governmental policies influence these relationships.

Required Texts:

• Gwartney, James D. et al. Microeconomics: Private and Public Choice, Eleventh Edition, Thomson Southwestern, 2006.
• Stroup, Richard L. Eco-nomics: What Everyone Should Know About Economics and the Environment, Cato Institute, Washington D.C., 2003.

Supplemental:

• Study Guide to Accompany Microeconomics; Public and Private Choice, Eleventh Edition, Thomson Southwestern, 2006.
• Espey, Molly. "Workbook APEC 257: Natural Resources, the Environment, and Economics" is available online at http://www.sc.edu/sustainableu/Espey257test.pdf

Short additional required readings will be provided throughout the course. Reading of economic press such as the Wall Street Journal and The Economist is also recommended to provided background in current microeconomic issues.

OFFICE HOURS:

Feel free to talk with me any time I am in the office. I teach MWF 10:10-11:00 and MW 3:30-4:45 so will NOT be available during those times. You may also make an appointment with me or communicate via email.

From the Office of Student Disability Services:

"It is University policy to provide, on a flexible and individualized basis, reasonable accommodations to students who have disabilities. Students are encouraged to contact Student Disability Services to discuss their individual needs for accommodation."

Evaluation and Grading:

Grading: Student grades will be determined by performance in three major areas:

Preparation : There will be five short, multiple choice, true-false Readiness Assessment Tests (RATs) given during the semester, one at the beginning of each unit. The same RAT will be given to individuals then to groups. Groups will be formed by Dr. Espey.

Practice : In class group activities will be assigned on a regular basis with the same group grade given to all members of a group. There will also be seven to ten homework problem sets involving the application of theory discussed in class which will be due at the beginning of the designated class dates. Late assignments will be marked down 10 percent and will not be accepted more than one class period late. There will also be several additional optional assignments that will allow students to learn new topics and hone their skills of economic analysis.

Performance: A comprehensive final exam will be comprised of short answer analysis of economic theory, problems similar to the homework problems, and multiple choice questions.

In order to pass this course, students must have attained a basic level of knowledge of key economic concepts and how to apply the basic tools of economic analysis to a variety of situations. This will be demonstrated by earning at least 70% of the points possible on the comprehensive final exam. In order to pass this course with a grade above a D, the following requirements must be met:

Group Participation: Evaluation of group participation will be comprised of two parts, (1) group scores on RATs and other group assisgnments and (2) peer evaluations. Group scores will be weighed equally between RATs and other assignments. For peer evaluations, each individual will rate the other members of his/her group at the end of the semester. Individual peer evaluation scores will be the average of the points received from the other members of the group. Each individual will have a total number of points to distribute to his/her teammates equal to 10 times the number of group members not counting the evaluator. For example, if there are six members in a group, each student has 50 points to assign to the other five members of the group. At least two of the ratings must be differentiated; that is, one may not give all of the other members a 10. The group scores will be weighted by the peer evaluation score to determine a group participation score for each individual. As a result, group members can't help everyone in their group get an A by giving them a high peer evaluation score. The only way for everyone in the group to earn an A is by doing an outstanding job on the group assignments and for all members to be active, productive group members. "Satisfactory group participation" will be scores that are at least 80% of the class average group participation score. "Active, regular group participation" scores must be at least 90% of the class average.

Reading Assignments

Unit 1: Introduction and Supply and Demand
      (Readiness Assessment Test - August 28)
   Gwartney et al, Chapters 1-3
    Applications (not on RAT) - Stroup Chapter 1
                                                  Gwartney et al, Chapter 4
Unit 2: Consumer Demand Theory
      (Readiness Assessment Test - September 15)
   Gwartney et al, Chapter 7

Unit 3: Production and Cost Theory
      (Readiness Assessment Test - October 6)
    Gwartney et al, Chapter 8

Unit 4: Market Structure and Supply Elasticity
       (Readiness Assessment Test - October 20 )
    Gwartney et al, Chapter 9, Ch. 11(p. 236-242) , and Ch. 7 section on supply elasticity
    Extensions (not on RAT): Gwartney et al Chapter 10 and the rest of Chapter 11

Unit 5: Natural Resource and Environmental Economics
       (Readiness Assessment Test - November 10)
   Gwartney et al Chapter 5 and Part 5 Topics 10 and 11
   Applications (not on RAT) - Stroup Chapters 2-4

Each Readiness Assessment Test will cover the assigned readings for the designated section unless otherwise noted.

COURSE SCHEDULE:

Academic Integrity Policy of the University:

Academic Dishonesty is defined as: (1) Giving, receiving or using unauthorized aid on any academic work; (2) Plagiarism, which includes the copying of language, structure, or ideas of another and attributing the work to one's own efforts; (3) Attempts to copy, edit, or delete computer files that belong to another person or use of Computer Center account numbers that belong to another person without the permission of the file owner, account owner or file number owner. All academic work submitted for grading contains an implicit pledge and may contain, at the request of an instructor, an explicit pledge by the student that no unauthorized aid has been received.

"As members of the Clemson University community, we have inherited Thomas Green Clemson's vision of this institution as a 'high seminary of learning.' Fundamental to this vision is a mutual commitment to truthfulness, honor, and responsibility, without which we cannot earn the trust and respect of others. Furthermore, we recognize that academic dishonesty detracts from the value of a Clemson degree. Therefore, we shall not tolerate lying, cheating, or stealing in any form."

This syllabus is preliminary and subject to change. The version distributed in class is the official version.

  Fall 2006 Course List        AE & S Home

Dr. Molly Espey, Professor, Department of Applied Economics & Statistics, Clemson University, Clemson, SC 29634-0313.

updated 10/25/06